Synchrony Financial vs Macy's Which Offers More Value?

Synchrony Financial and Macy's are two prominent companies in the retail industry, each with its own unique strengths and weaknesses. Synchrony Financial is a leading consumer financial services company that specializes in providing private label credit cards and other financial products. Macy's, on the other hand, is a well-known department store chain with a strong brand presence and loyal customer base. Both companies have seen fluctuations in their stock prices due to various factors such as market trends, consumer behavior, and economic conditions. Analyzing the performance of Synchrony Financial and Macy's stocks can provide valuable insights for investors looking to make informed decisions in the retail sector.

Synchrony Financial or Macy's?

When comparing Synchrony Financial and Macy's, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Synchrony Financial and Macy's.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Synchrony Financial has a dividend yield of 1.46%, while Macy's has a dividend yield of 4.21%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Synchrony Financial reports a 5-year dividend growth of 5.92% year and a payout ratio of 14.72%. On the other hand, Macy's reports a 5-year dividend growth of -15.21% year and a payout ratio of 102.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Synchrony Financial P/E ratio at 8.49 and Macy's's P/E ratio at 24.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Synchrony Financial P/B ratio is 1.68 while Macy's's P/B ratio is 0.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Synchrony Financial has seen a 5-year revenue growth of 0.02%, while Macy's's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Synchrony Financial's ROE at 20.85% and Macy's's ROE at 2.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.65 for Synchrony Financial and $16.21 for Macy's. Over the past year, Synchrony Financial's prices ranged from $35.29 to $69.39, with a yearly change of 96.62%. Macy's's prices fluctuated between $14.06 and $22.10, with a yearly change of 57.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.